114 



PPC Principles for Tiered Rates 



(Draft of September 6. 1993) 



1 . Implementation of tiered rates must be accomplished within the structure of existing 

 statutes. 



2 . Tiered rates require new BPA Power Sales and Residential Exchange Contracts. 



3 . All existing FBS and conu-acted resources are subject to public preference, including those 

 that yield unbundled products and services, those used to make sales to the DSIs, and 

 nonfirm energy. 



4. New preference customers shall be able, with reasonable notice, to request and receive an 

 allocation of BPA resources, including the FBS, subject to public preference. 



5 . Regional preference shall be retained. 



6. Customers shall be free to make their own resource decisions, subject to applicable laws 

 and regulations. 



7 . Regional customers must have the option to have BPA meet their loads and load growth. 



8 . Customer rights to displace purchases from BPA should be clearly defined. 



9 . Allocations of power must be stable and predictable. 



1 0. Initial allocations of first tier power should be simple, straight-forward and subject to 

 minimal adjustments. 



1 1 . Prices for each tier must be based upon the costs of the resources in each tier (only actual, 

 not theoretical, costs) 



1 2. BPA's rate design shaU depend on the resource and load characteristics in each tier. 



13. BPA's resource acquisitions shall be based upon reasonable notice from the customers. 



1 4 . BPA's net revenue volatility shall be minimized. 



1 5 . Unbundled services must be available at cost, concurrent with the implementation of tiered 

 rates, subject to public preference. 



1 6. Access to federal transmission must be available at cost, concurrent with implementation of 

 tiered rates, subject to public preference. 



1 7 . Utilities should be allowed to combine their allocations of power by assignment to a pool 

 consisting of Northwest preference customers. 



ATTACHMENT 1 

 PPC Testimony before the 

 Committee on Natural Resourees 

 BPA Task Force (Page 1 of 5) 



